(b)Lines Information and Insights for the 403(b) community / brought to you by PLANSPONSOR.
September 19th, 2017

What 403(b) Plan Sponsors Can Learn From Recent Lawsuits

Fiduciaries of 403(b) plans will have to pay extremely close attention to recordkeeping fees and investment options to avoid getting caught in a whirlwind of 403(b) lawsuits. The ongoing 403(b) plan litigation surrounding a handful of major universities has many plan sponsors wondering whether their institutions might be the next target. However, several steps can be taken to prevent a lawsuit—and to establish defenses in the event one arises.Read more >

DOL Announces Additional Relief for Hurricane Irma Victims

The relief regards verification procedures for plan loans and distributions, participant contributions and loan payments, blackout notices, and group health plan compliance.Read more >
RMDs and Rehires
“Let’s say I rehire someone who previously worked here, and had previously commenced required minimum distributions since he/she was older than 70 ½. Can he/she cease such distributions upon rehire (assuming this is not a 403(b) plan where required distributions might be made from other plans)?”Read more >

Helping Workers Who Are Struggling With Student Loan Debt

While a pestering task, paying off student loans requires fulfillment and consistency, says Matt Sommers, vice president and retirement strategy group leader at Janus Henderson. A survey from IonTuition found 57.8% of employees said it would be helpful if employers provided information and online tools, including a hotline for repayment education and one-on-one student loan counseling. Additionally, 35.6% of respondents are unaware of their student loan repayment options. With education and new tools, plan sponsors can help employees get student loan debt under control.Read more >

TDFs Outperformed Typical DC Investor Since 2006

The Callan DC Index returned “a healthy 3.06%” during the second quarter, reflecting strong equity market performance among defined contribution (DC) plan investors. The index actually trailed the typical age 45 target-date fund (TDF), which gained 3.65% in the second quarter and 9.42% in the first half of the year. “These are the TDFs that would be selected by participants age 45 and retiring at age 65—or the typical DC participant,” Callan notes. For context, the firm reports TDFs have benefited from higher exposures to non-U.S. equity and emerging markets relative to real investors; both investing categories are up sharply year to date. Index also shows nearly three-fourths of DC plan account balance growth has been due to investment performance.Read more >

Editorial: Alison Cooke Mintzer alison.mintzer@strategic-i.com

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